2022.8.29
Crypto News Talk is a bilingual series of programs produced by Himalaya Australia Digital Soldier H-Pay Promotion Group, aiming to promote H-coin, Himalaya Exchange, H-Pay, knowledge and changes in the crypto market industry. The slogan of the program is Wealth Pulse, Commercial Opportunities, Strategic Outlook, Crypto News Talk. In our previous Episode, we discussed “What is CBDC?” and “What is Stablecoin?”
The key difference between CBDC and Stablecoin is - Who is issuing it.
A CBDC is digital currency issued and controlled by a country’s central bank.
Stablecoins are privately issued on various blockchain networks that support smart contracts.
What are key principals that regulators whether they be CBDC or Monetary authority should do before they regulate?
The Federal Reserve is the Central Bank of the US.
Monetary authority of a country, generally the Central Bank, controls the supply of money.
SEC has not taken action to regulate stablecoin issuers. SEC to regulate crypto will remain regulation by enforcement.
The legislation that could establish US regulations for stablecoins has been delayed until after the August congressional break.
The answer they think the regulators are with the CBDC.
The principal goal is to facilitate payments among consumers on a day-to-day basis as an alternative to cash, both domestically and across national borders.
Establishing a Regulatory Framework
- Establishing retail/wholesale CBDC account (can be existing)
- Regulatory concerns – risk of loss, counterfeiting, privacy, and money laundering
- Consumer protection
- Concerned with broader financial stability considerations.
Applying the Regulatory Framework
- CBDC should be regulated similarly to the regulation of wholesale digital funds transfers
- Risk of loss, Counterfeiting, Privacy, Money laundering
Fed's BIG plans for Crypto
On 16 August 2022, the US Federal Reserve released a “Press Release”.
Federal Reserve Board provides additional information for banking organizations engaging or seeking to engage in crypto-asset-related activities
The emerging crypto-asset sector presents potential opportunities to banking organizations, their customers, and the overall financial system.
What a statement, we are now having discussion on US Government Level, on Centre Bank Level. That’s important, that’s going to lay out the infrastructure, the pipelines, the highways for the crypto-asset.
However, crypto-asset-related activities may also pose risks related to safety and soundness, consumer protection, and financial stability.
The supervisory letter issued today outlines the steps Board-supervised banks should take prior to engaging in crypto-asset-related activities, such as assessing whether such activities are legally permissible and determining whether any regulatory filings are required.
Additionally, the supervisory letter states that Board-supervised banking organizations should notify the Board prior to engaging in crypto-asset-related activities.
The supervisory letter also emphasizes that Board-supervised banking organizations should have adequate systems and controls in place to conduct crypto-asset-related activities in a safe and sound manner prior to commencing such activities.
A crypto-asset generally refers to everythings on Blockchain; Cryptocurrencies, Digital Assets, NFT, Tokenized Assets, Tokenized Securities, CBDC, Stablecoins etc .
We will be seeing Every major platform will have a Token; such as Amazon, Facebook, Social Media etc A Reddit cryptocurrency RCP (Reddit Community Points) is running on Ethereum blockchain for their communities.
The measures focus on six key areas: consumer protection, financial stability, illicit activity, U.S. competitiveness, financial inclusion and responsible innovation.
The Biden administration also wants to explore a digital version of the dollar.
From the Fed Press Release, we now see things are moving ahead. It is slower than we wanted.
However, we are still waiting for the Crypto Regulation.
Latest news from Ex-CFTC Chair, claims neither SEC nor CFTC currently have the Power to regulate the Crypto Markets.
The Advantages of Himalaya Exchange
Stablecoin HDO is pegged to US Dollar. That is why dozens of countries are now speaking to us on licensing.
Their feedbacks were:
We have the best System that is unique
The legitimacy of the system is awesome
The Global legal setup and security is the best
Mr Miles Guo added, this is the most awesome system which is my design.
The above is a summary of the 3rd episode of the Crypto News Talk. For more content, please find the video on Gettr or Youtube.
Editor: SteveT#8369 | Eddy#3853 | 灭共小猫咪#7782
Publisher: Himalaya Australia Digital Soldier H-Pay Promotion Group
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The content of this article represents only the personal views of the author. The platform assumes no legal responsibility.
